CREDIT INSTITUTIONS IN ARUBA
A license is required
The Aruba State Ordinance on the Supervision of the Credit System (Landsverordening toezicht kredietwezen, the “SOSCS”) prohibits anyone from engaging in the business of a credit institution (‘kredietinstelling’) in Aruba without a license issued by the Central Bank of Aruba (the “Central Bank”).
A credit institution is defined as an enterprise or institution that to an important extent makes its business of:
- solicitation of repayable funds (“deposits”, whether term deposits or deposits which are repayable on demand, whether or not savings deposits, whether or not against issue of debt instruments) (the “funding side”); and
- granting credit for its own account (the “application side”).
Only companies with an establishment, branch-office or representative office, qualify as credit institution.
Karel Frielink
Curacao-based Attorney (lawyer) / Partner
21
Aug
2007
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